Skip to main content
11:00 am
major league baseball team. we will talk to him. at 4:00 eastern, they aren't married, they aren't in love but they want to be parents together, friends with kids. we'll take a look at this new type of modern family. first, will a world economy and turmoil derail america's economic comeback. christine romans has answers as your money starts right now. another week of volatility in the markets. the reason? global unrest. uncertainty about the fed's role in propping up the economy. i am christine romans. this is "your money." from space, earth appears peaceful. while science points to a u.s. economy that is ready to take off, the rest of the world is struggling to take fights. riots in turkey, slow growth in china, unrest over harsh cuts in
11:01 am
greece. from ux treem greed to extreme fear. concerns over a global recession already creating volatility for investors. this week saw the biggest single day decline in the dow this year. >> i would give our economy a b to a b plus. >> the other guy's is dragging us down. >> why might you be feeling optimistic. housing prices on the rise, consumer confidence at a five-year high, fewer americans filing for unemployment. will america's comeback continue or will the u.s. be dragged down by a world economy in turmoil? i want to bring in keith mccullough and michelle myer. nice to see both of you this weekend. keith, you say the economy gets a b minus but we could get an a. what makes you so optimistic? how do we get that a? >> if we did more of the same, it would be awesome. a b plus could be an "a." an "a" is what it is relative to the rest of the world already.
11:02 am
to have a stronger dollar would be my number one choice. we need to get ben bernanke out of the way. for me, the thing that scares me the most is him not getting out of the way. i think if you get him out of the way and the market is trying to get him out of the way, what ends up happening, the dollar strengthens, come modmodity pri come down. you start to get some consumption growth in the economy, which is how this economy works. >> the household balance sheets have been improving. keith, when you say get ben bernan bernanke out of the way? you mean he doesn't need to be pumping $85 billion a month into the economy. >> i want the guy out of the way. he has to stop with the bond buying. >> take off the training wheels and let's let it go. michelle, what's your rating on the u.s. economy? >> i don't know. i would be a little bit more careful than keith and say let's
11:03 am
move all the policy and remove ben bernanke's presence in the economy. the fed has done an extremely important role in the past several years of lessening the impact of this recession. it was a real meltdown we were experiencing in '08. what we are seeing now is an economy that's still heelialing from this deep recession. the housing market is looking better, auto production sales are picking up. some of the most cyclical parts of the economy are showing strength. i think we are on the beginning, in the beginning stages of that. what would worry me is that if you take away this fed policy too easily and create a big spike in interest rates, costs go up. two of the sectors that are performing the best, housing and auto, could start to suffer. i think you have to be very careful when you are this i go about policy prescriptions for the economy.
11:04 am
>> what you are both illustrating to me was the word of the week, taper. it is no the a candle but what everyone thinks the fed is going to do with its bond-buying program. the economy improves and just a hint of that has pushed the volatility index, the fear index, up 27% higher over the next month. keith, what would actually happen when the fed actually pulls back, assuming you get your wish and ben bernanke steps out of the way. how do markets respond? >> to be clear, i don't want the guy to jump off the cliff but just get out of the way at a measured pace. jobless claims continue to surprise on the down side. housing continues to get better and consumption is good. the guy should get out of the way. what i would suspect is not this freakout of interest rates going higher. as a country, people are really, really scared where they should be much more progressive in their thinking. if you go back to 1982 or 1982, interest rates were up and the world didn't end the last i
11:05 am
checked. interest rates going up is a pro-growth signal. americans are tough enough to handle it. people are tired of the whole fearmongering about what might happen if a central planner doesn't hold our hand. >> maybe this is fearmongering or maybe this is a smart forecast. according to pinko we are likely to see another global reception. europe's economy struggles and china's growth has been slowing. what effect would another global recession have on this u.s. recovery? >> it would be pretty poor timing. if growth in china didn't seem to slow, if europe starts to weaken significantly again, of course, it will impact global trade. it will impact the u.s. recovery. you are already seeing some signs of. in the u.s., our manufacturing industry has been slow to recover. we have seen some weak survey
11:06 am
data, weak output data outside of auto production. we are a global open economy. what happens in china, what happens in europe will certainly matter for our outlook as well. >> for most the people who are watching us, it is maybe their house or their job is how they are going to create wealth. it is not going to be a big investment portfolio. talk to me about both of those two things. for someone watching who says, i have no control over china or ben bernanke, how can regular people make money or protect their money, what do you tell people? >> that's a great question, a very fair question to ask. i think housing has a big part of that. we are seeing real signs of life in the housing market. it is quite encouraging. last year, home prices are up about 7.5% nationally. this year, i think we can see 8 to 10% appreciation on the year. granted, we are coming off a very low level. there are still a lot of homeowners under water on their mortgage, a lot of homeowners that would have to realize a loss if they were to sell. we are seeing momentum start to
11:07 am
build in the market. so the outlook should be much more positive in terms of future home prices. that's one of the biggest assets for household balance sheets. starting to see the appreciation is very powerful in terms of building back household wealth and fueling consumer spending and helping to support overall confidence. >> do you agree with this, keith? >> big-time. it is the first time that your home and stock market portfolio are up double digits at the same time year to date. that is one of the most misunderstood and positive things that's driving positive consumer confidence. you get a lot of people that are getting very regress sieve. america the things they own are going up in prices. housing prices could be up 12-15% year over year, christine, which i think would be phenomenal. >> i hope that is in my zip code. keith, michelle, both of you have a great weekend. >> you as well double irish with a dutch
11:08 am
sandwich. it is not the latest lunch craze but a corporate tax gimmick and the next kind of loophole that has my next guest crying out for business tax reform. [ female announcer ] the only patch for the treatment
11:09 am
of mild to moderate alzheimer's disease is exelon patch. now with more treatment options, exelon patch may improve overall function and cognition. your loved one can get a free 30-day trial. and you can have access to nurses. it does not change how the disease progresses. hospitalization, and rarely death, have been reported from wearing more than one patch at a time. the most common side effects are nausea, vomiting, diarrhea, fall, loss of appetite or weight, application site redness, and urinary tract infection. the likelihood and severity of these side effects may increase as the dose increases or if patients weigh less than 110 pounds.
11:10 am
people at risk for stomach ulcers who take certain other medicines should talk to their doctor as serious stomach problems such as bleeding may worsen. patients may experience slow heart rate. free trial offer for them. nurses to talk to for you. visit ♪
11:11 am
>> the double irish with a dutch sandwich. i mentioned it before the break, a strategy that let's companies like apple route their profits around the world so they can pay less in taxes. it is perfectly legal. why do companies go to these lengths and extremes? on paper, the u.s. has the highest corporate tax rate in the world. the u.s. tax rate is 39.1%. that takes in account federal and local taxes. the average for the developed world is 25.5%. let's be clear, most companies do not pay that top rate. thanks to loop holes, special treatment for certain types of businesses, s&p 5 companies pay closer to 29%. some utility companies pay an average of 12% while big energy companies pay more. it is a system that encourages companies to employ armies of accountants and tax attorneys to
11:12 am
lower their tax burdens. who is at fault? ask senator rand paul. >> i think the congress should be on trial for creating a bizar bizarre and bizantine tax code that couldn't compete with the rest of the world. >> congress writes the laws and is the owner of the volumes of books that are the tax code full of loop holes. some of those tax codes and loop holes written by the industries that benefit from them. >> you say that performing the corporate tax system could unleash economic growth. tell me how. >> well, basically, we're starting with the notion of really bringing the corporate tax rate down. study after study has shown as the oecd recently said, corporate taxation is the most
11:13 am
inefficient form of taxation. it discourages investment. it encourages companies when they can be mobile to look for lower tax environments to place economic activity. if we want to create investment incentives here for u.s. companies and foreign companies and for jobs here, we have to start with a competitive corporate tax rate. that's the first step, bringing the rate down. the second step is paying for that by getting rid of the kind of loopholes, preferences, credit subsidies that have been added to the code over the past 30 years. that really distorts the code. economists worry a lot about the distortions. why do you prefer one sector to another sec torey, otor to anot? this is really inefficient. we can get growth growing by a much lower rate and by getting rid of it, paying for that lower rate through base broadening.
11:14 am
>> to get reform done, republicans and democrats need to give something up. corporate tax revenues, the share of gdp is historically low. you can see companies like apple under our current tax system. they pay u.s. tax rates on the profits they earn overseas. apple keeps something like $100 billion in cash offshore. you say we need a territorial tax system. explain in layman's terms for our audience, how would that work? >> what we need is a system which is more similar to the systems of the other advanced industrial countries that are homes to companies that compete with our companies. what is the rest of the world doing? they are basically saying to a company, look, if you earn income outside of your head quarter country, because you are running real economic activity there, you are basically selling into that market, that's how you compete around the world, anyone
11:15 am
that income when you bring it back, you may pay some tax on some portion of that but a lot will come back without any additional domestic tax. that's what the rest of the world does. then, the rest of the world has a variety of different ways of trying to handle the fact that there is some money abroad that is shifting from one location to another, not because of real economic activity but because of tax haven low tax debts. countries have said, we can figure out a way to handle this movement of income. when money comes back from our companies, we'll subject it to some tax but nothing like the tax grade that apple would confront if it brought its income back to the united states. so we have a system now where essentially there is a very strong incentive for a company that's selling abroad, competing abroad, earning income abroad,
11:16 am
paying taxes abroad, not to bring that money back. that hurts the u.s. economy. we want that money back. we need that money back for creating jobs here, to are creating investments in our community here. >> we will see if tax reform is something that can happen in the for seeable future. laura tyson. >> i am optimistic. >> the politics and economics of it are two different things. laura tyson, thank you so much. coming up, warren buffett has some ideas for driving the recovery. wo well, look at what we've accomplished using 50% of our salaries. imagine what we could accomplish with 100% could washington's gridlock actually hold a solution? that's next. ical damage was pretty bad. the emotional toll was even worse. our daughter had nightmares. what that robber really took from us was our peace of mind. with adt, we got it back.
11:17 am
[ male announcer ] every 14.6 seconds, a burglary takes place in the united states. so rely on the fast alarm response of adt. a single adt system can help protect you from burglary, fire, and high levels of carbon monoxide. when an alarm is received, adt calls the local authorities for help. and you can get this monitored protection, plus great local service, starting at just over $1 a day. and only adt offers a theft protection guarantee. take it from me. the time to think about a security system isn't after something bad happens -- it's before. [ male announcer ] call now and get one of our best values -- adt's quick connect plus system installed for $99. hurry, and take advantage of these savings. adt. always there.
11:18 am
...and we inspected his brakes for free. -free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke.
11:19 am
you may not know it but you
11:20 am
could owe thousands of dollars to all the birthday parties you have performed. the rights to perform the 120-year-old song happy birthday are owned by warner chapel group. it could return it to the public domain. president obama could be on the hook for his rendition. ♪ happy birthday to you ♪ happy birthday to you . >> did you know that was a copy write on the happy birthday song. with gridlock in washington, it is no surprise john boehner and the republicans have a different take on the birthday song. ♪ this is your birthday song, it doesn't last too long ♪ . >> i am not sure speaker boehner needs to be worry about being sued when legendary warren buffett speaks, investors
11:21 am
listen. what did he have to say? >> reporter: warren buffett has a message for corporate america. you are underutilizing most of the talent in this country. the legendary investor sat down for an exclusive interview focusing on women, work and the future. through his lifetime he has watched women from his sisters, his friends, his peers, often treated as second class citizens told they couldn't do as well in business as men. buffet does not think that women in the work place always get a fair shake. >> the message my sisters heard, they didn't hear it verbally. they just heard it through all kinds of actions of people but they didn't have the same future i had. >> so it is interesting. you saw this play out in your own family. you had two sisters who you say that your floor was their ceiling. was that parenting? was that society? >> it was society.
11:22 am
it came through parenting. it came through their teachers. in every way, they were told the best thing was if they marry well. i was told that everything in the world was available to me. i was born in 1930. if i had the same wiring but i had been a female, my life would have been entirely different you know. >> i wonder if your message is more for women or for men. >> it is for both. men should realize if they had male workers and those workers could accomplish more if they had more education or whatever it might be, they would jump on that in a second. to take half the people and not recognize that they have just as much potential as the others and use them is a big mistake. >> as you've been more outspoken about women and the workforce, there are some that have come back at you and said, what about berkshire hathaway, you have 70 plus companies and five female ceos and evenly three of your 13
11:23 am
board members are women. should change be happening at berkshire? >> change is happening at berkshire. the last five directors that have been appointed, three are women. in terms of ceos, i've probably only appointed six or seven ceos, because they come with the businesses and they stay. >> when there is a new ceo needed or a new board member, do you look specifically more at women to see if ir that is a woman of equal caliber to take that job to have that diversity? >> i am going to pick the best person in the end. if there are two that are 9 on the scale of 10 and one is a woman, she is probably going to get the job. >> i think one really important part of this discussion is there have been some that say the rise of women means the downfall of men? >> that's crazy. >> it says if you educate more people it hurts the ones that are already educated or something of the sort? >> it is crazy to let any human
11:24 am
operate below their potential when just by changing the rules a little, you could give them a better chance to meet their potential. >> our thanks to warren buffett for that. now, christine, as for why buffet is speaking out about this now, he told me he has been talking about this to student groups who come visit him for years. after he read cheryl sandberg's book, "lean in" he decides this is a message he twoonts put out there more broadly. look at how much america has accomplished not even using 100% of our talent. he says, there is much more we can do. if you would like to read buffet's essay on women and work, go to thanks, poppy. for more on the empowerment of women don't miss cnn's "girl rising." it tells the story of girls around the world and the power of education for working women, nothing says power like a pair of still let toes. why digging your he'lls in at the office may come at a painful
11:25 am
cost. sparkly water and pure white sand might not get you off your couch, but there's not a creature on earth that can resist this. if you have high cholesterol, here's some information that may be worth looking into. in a clinical trial versus lipitor, crestor got more high-risk patients' bad cholesterol to a goal of under 100. getting to goal is important, especially if you have high cholesterol plus any of these risk factors because you could be at increased risk for plaque buildup in your arteries over time. and that's why when diet and exercise alone aren't enough to lower cholesterol i prescribe crestor. [ female announcer ] crestor is not right for everyone. like people with liver disease
11:26 am
or women who are nursing, pregnant or may become pregnant. tell your doctor about other medicines you're taking. call your doctor right away if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine or yellowing of skin or eyes. these could be signs of rare but serious side effects. is your cholesterol at goal? ask your doctor about crestor. [ female announcer ] if you can't afford your medication, astrazeneca may be able to help. for all those who sleep for all those who sleep too hot or too cool, and struggle to sleep comfortably together, now there's a solution. the company that individualized your comfort with the sleep number bed is now introducing sleep number dual temp, the revolutionary temperature-balancing layer with active air technology that works on any mattress, including yours. whether you sleep hot or cool sleep number dual temp allows each of you to select your ideal temperature. so you can both sleep exactly the way you like-at your own perfect temperature.
11:27 am
and there's only one place in the world you'll find an entire collection of temperature-balancing solutions-including the revolutionary new sleep number dual temp layer-designed to give you the soundest sleep of your life: a sleep number store near you. sleep number. comfort individualized. visit to find one of our over 400 sleep number stores nationwide.
11:28 am
$2.4 billion is how much women spent on high heel shoes last year. they spent more on three inches and higher than any other shoe. what you wear on your feet projects power in the office. are sky-high heels worth the pain? j. lo's are expensive and designer. ♪ >> kellie pickler seeks revenge in hers. when it comes to women in heels, most say the higher the better. not all boots are made for walking ♪ one of these days, these boots are going to walk all over you ♪ . >> a new survey conducted by new england's college of poe die tri finds the average woman begins
11:29 am
to feel pain after 1 hour and six minutes of strutting around in her stilettos. despite the ago any, 43% of women say they have continued to wear uncomfortable shoes. >> i am 32, bunion free and i have been wearing heels my whole life. i am going to still rock them. >> 36% of women say they would wear shoots that didn't fit in the nation of fashion. >> you can't go to a party without heels. that makes your outfit. >> high heels can cause stress fractures, tendinitis, all types of bone spurs and encourage bunion and hammer toe formation. >> new york city podiatrist says women should know a sexy pair of shoes may be causing some not so sexy problems for your feet. >> they do develop over times. even younger girls are having problems with their feet due to high heel use. >> mary jane's. i thought these were an urban shoe miss. >> it has taken a toll on shoe
11:30 am
c conasieur sarah jessica parker. who said all the time in stilettos ruined her feet. maybe the best solution is to pack a pair of flats. for the record, i'm wearing flats right now. thanks for joining the conversation this weekend. we are here every saturday. until then, you can find me on facebook. on twitter, my handle is @christineromans.

Your Money
CNN June 15, 2013 11:00am-11:31am PDT

News/Business. A break down the financial news of the week.

TOPIC FREQUENCY U.s. 11, China 5, America 5, Warren Buffett 4, Us 3, Europe 3, Ben Bernanke 3, United States 2, Laura Tyson 2, Christine Romans 2, Christine 2, Washington 2, Berkshire 2, Keith 2, Keith Mccullough 1, Michelle Myer 1, Poppy 1, Underutilizing 1, Astrazeneca 1, Bizar 1
Network CNN
Duration 00:31:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Channel v759
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 1920
Pixel height 1080
Sponsor Internet Archive
Audio/Visual sound, color

disc Borrow a DVD of this show
info Stream Only
Uploaded by
TV Archive
on 6/15/2013